In 2024, Singapore’s Pension Scheme continues to evolve, offering a range of options to ensure financial security and stability for its residents during their retirement years. The recent announcement from the financial ministry of Singapore would surely put a smile on the faces of retirees or soon to be retirees. From the increase in ordinary and total wage ceiling to changes in CPF contribution rates, this article would break down the contributions, eligibility criteria, and recent changes introduced in Budget 2024. Read on to get more insights.
Singapore Pension Scheme 2024
Singapore relies on the Central Provident Fund (CPF), a mandatory savings system where individuals actively manage their retirement through designated accounts with flexible access options and varying interest rates. At retirement, they can choose monthly payouts, lump-sum withdrawals, or a combination.
CPF –CPF contributions are made by both employers and employees, covering retirement, healthcare, housing, and family protection needs. Administered by the Central Provident Fund Board (CPFB), CPF ensures financial security throughout an individual’s life by managing contributions, investments, and payouts. CPF has two schemes under its wing:
- Provident fund Scheme: Mandatory savings schemes where both employees and employers contribute a portion of the salary. They typically offer various withdrawal options for different purposes like retirement, housing, or education. There are three accounts for the employees: the Special Account, MediSave Account, and the Ordinary Account.
- Non-contributory pension scheme (NCPS): Government-supported programs offering additional retirement benefits for low-income or specific demographics. They primarily provide fixed or means-tested payouts on top of other retirement savings, regardless of individual contributions.
Through the Singapore Pension Scheme 2024, the CPF contribution rates for workers aged 55 to 65 will see an increase of 1.5 percentage points in 2025. Additionally, the Enhanced Retirement Sum (ERS) will expand from three times the Basic Retirement Sum (BRS) to four times, allowing more members aged 55 and above to maximize their accumulated CPF savings for higher payouts at retirement.
Overview of Singapore Pension Schemes 2024
| Name | Singapore Pension Scheme 2024 |
| Country of Origin | Singapore |
| Regulating body / Department | Central Provident Fund Board (CPFB) |
| Year | 2024 |
| Category | Government Aid Finance |
| Objective | Financially support old age, senior people, and retirees. |
| Applicable persons | Old age, senior people, and retirees of Singapore. |
| Age Limit | 60+ years |
| Percentage increase in 2024 (applicable in 2025) | Ordinary Wage Ceiling – 4.6%
Total Annual Ceiling – 21.4% |
| Amount | Ordinary wage Ceiling — 6,800 SGD
Total annual Ceiling- 102,000 SGD |
| Applicable Month | January 2024 |
| Website | https://www.cpf.gov.sg/ |
Terms for Understanding Under Singapore Pension
Ordinary Wage Ceiling (OWC): This sets the maximum monthly salary on which mandatory CPF contributions are calculated for both employees and employers.
Total Annual Ceiling: This limits the combined total of Ordinary Wages (OWC) and Additional Wages (AW) used to calculate CPF contributions in a year and can include bonuses, overtime pay, etc., exceeding the monthly OWC.
Enhanced Retirement Sum (ERS): Highest recommended level of savings for retirement in Singapore, currently set at three times the Basic Retirement Sum (BRS). It allows individuals to receive higher monthly payouts through CPF LIFE after retirement. It will be four times of BRS in 2025.
Basic Retirement Sum (BRS): Minimum amount one needs to have in CPF savings before accessing certain withdrawal options at retirement.
Full Retirement Sum (FRS): It is currently two times the BRS and allows to keep a larger portion of savings for monthly payouts through CPF LIFE.
CPF Contribution Chart
| Employee’s age (years) | 2024 | CPF Contribution Rates from 1 Jan 2025 | ||
| Total (% of wage) |
Total (% of wage) |
By employer (% of wage) |
By employee (% of wage) |
|
| 55 and below | 37 | 37 | 17 | 20 |
| Above 55 to 60 | 31 | 32.5(+1.5) | 15.5(+0.5) | 17(+1) |
| Above 60 to 65 | 22 | 23.5(+1.5) | 12(+0.5) | 11.5(+1) |
| Above 65 to 70 | 16.5 | 16.5 | 9 | 7.5 |
| Above 70 | 12.5 | 12.5 | 7.5 | 5 |
Eligibility Criteria for Singapore Pension Scheme 2024
- Person was born in 1954 or later, or payout eligibility age is 65 years.
- The person should be a working Singapore Citizens and Permanent Residents.
- CPF contributions are mandatory for employees and employers.
- Various retirement sums (BRS, FRS, ERS) determine monthly payouts during retirement.
Increased amounts under Singapore Pension Scheme 2024
ERS: Currently set at 3 times of the BRS. Will be raised to 4 times the BRS to in 2025 to provide members an option to top up their retirement account (RA) to receive even higher monthly payouts in retirement.
2024 (Current) – $308,700
2025 – $426,000
2026 – $440,800
2027 – $456,400
BRS and FRS: Minimum amount one needs to have in CPF savings from the age of 55 before getting various withdrawal options at retirement and to keep a larger portion of savings for monthly payouts through CPF LIFE.
| Age 55 | BRS (in SGD) | FRS (in SGD) |
| 2024 | $102,900 | $205,800 |
| 2025 | $106,500 | $213,000 |
| 2026 | $110,200 | $220,400 |
| 2027 | $114,100 | $228,200 |
Ordinary Wage Ceiling (OWC) and Total Annual Ceiling (TAC): Both OAC and TAC saw some percentage of increase the maximum amount in CPF contributions.
2023: OWC was 6,500 SGD and TAC was 84,000 SGD.
2024: The OWC increased to 6,800 SGD and TAC to 102,000 SGD
How to apply & Check claim Status for Singapore Pension Scheme 2024
Employees who meet the eligibility criteria are automatically enrolled. Individuals who are self-employed can contribute to the CPF freely. The amount can only be claimed through various CPF Schemes which includes monthly pay out or quarterly payout after the person reaches the retirement age.
To check the status, one can login to CPF’s official website (https://www.cpf.gov.sg/member) or mobile app using SingPass or can call at 6551 0600.
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